OC Oerlikon (OERL) Q1 2025 earnings summary

Executive summary

• Oerlikon is finalizing a decade-long portfolio transformation, divesting Barmag to focus on Surface Solutions as a pure-play leader.

• The Barmag divestiture to Rieter is expected to close in Q4 2025, with proceeds used for debt repayment and potential shareholder distributions.

• Orders remained roughly stable in Q1 2025, with momentum improving throughout the quarter despite challenging end markets.

• Q1 sales declined by 3.7% year-over-year at constant exchange rates, reflecting cautious customer purchasing and soft industrial activity.

• The company aims to become more agile, dynamic, and efficient, optimizing operations and corporate costs for its new scope.

Financial highlights

• 2024 sales (restated for discontinued operations) were CHF 1,639m, with operational EBITDA of CHF 304m (18.5% margin).

• EBIT for 2024 was CHF 113m (6.9% margin); operational EBIT was CHF 128m (7.8% margin).

• Net income for 2024 was CHF 25m.

• Q1 2025 order intake was CHF 421m, down 1.6% year-over-year at constant FX; sales were CHF 391m, down 3.7% year-over-year at constant FX.

• Barmag (discontinued) Q1 order intake was CHF 184m, down 15.6% year-over-year at constant FX; sales were CHF 181m, up 22.5% year-over-year at constant FX.

Outlook and guidance

• 2025 guidance: flat to low single-digit % sales growth for both the group and Surface Solutions, despite soft end markets, especially in Luxury.

• Operational EBITDA margin for Surface Solutions expected at 18.5–19.0% in 2025.

• 2025 guidance updated to reflect pure-play scope, excluding Barmag.

• Increased macroeconomic uncertainties recognized, particularly from potential prolonged trade conflicts.